China's chequebook diplomacy runs deep in the Pacific

The opening of a Chinese embassy in the Maldives in the Indian Ocean fits into
a long-established pattern by Beijing of pursuing better relations with
small island nations in the Pacific Ocean in a bid to win support at the
United Nations vis a vis Taiwan, and as a bulwark against American
influence.

Photo: AFP/GETTY IMAGES

By Alex Spillius

1:40PM GMT 11 Nov 2011

Several Pacific island states have received significant amounts of development aid from China or Taiwan, which Beijing regards as a renegade republic.

China and Taiwan continue to engage in what has often been called "chequebook diplomacy" with Pacific island nations, usually in the form of developmental aid or, in China's case, providing assistance for large government complexes, stadia or infrastructure projects.

In recent years China has offered large loans to Nauru’s destitute government and provided a varied aid package to the Kingdom of Tonga.

It included funds for reconstructing the capital Nuku'alofa's central business district; an agricultural project, health clinics, the provision of seven Chinese doctors for a two-year period and low interest loans to the government.

Islands have learnt to play off China and Taiwan, whose security is guaranteed by the US. Kiribati, the collection of coral atolls formerly known as the Gilbert Islands with a population of 96,000, announced it was opening diplomatic relations with Taiwan.